As the nation’s employment rate continued to improve, America’s overall business creation rate fell again in 2013.
According to the annual Kauffman Index of Entrepreneurial Activity, released today, the rate declined slightly from 0.30 percent of American adults per month starting businesses in 2012 to 0.28 percent in 2013.
That translates into approximately 476,000 new business owners per month in 2013 compared with 514,000 the year before.
For the first time in the 18 years this report has tracked entrepreneurship activity, the 2013 index includes new data on trends in entrepreneurship among new entrepreneurs who are not coming directly out of unemployment (sometimes called “opportunity” entrepreneurship).
The research indicates that the share of new entrepreneurs who are not most recently jobless was much higher in 2013 than at the end of the Great Recession.
“The 2013 business creation rate signifies a return to levels that we haven’t seen since before the recession,” said Dane Stangler, vice president of Research and Policy at the Kauffman Foundation, which conducts the annual study. “While we have speculated in recent years that changes in entrepreneurship rates could be driven by labor market conditions, this new data provides the strongest evidence we’ve seen of this correlation.”
The Kauffman Index of Entrepreneurial Activity is a leading indicator of new business creation in the United States.
Chosen excerpts by Job Market Monitor. Read the whole story at Entrepreneurial Activity Declines Again in 2013 as Labor Market Strengthens, according to Kauffman Report | Kauffman.org.
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